In accordance with the terms outlined in Article 23, Wage Rules, AMFA and Alaska Airlines met to discuss the first Annual Wage Review of our current Agreement in Seattle, WA. Both sides reviewed all data used for the review, and we found that the data was incomplete when it came to some contracts Line Premium and longevity. We explained that this data is needed to do a proper review; the Company will inquire to get that data as soon as possible.

We then conducted the external review with the data we did have, using the all-in wage compared to our primary competitors in accordance with the Agreement. The rates used were as of September 28, 2017, with none of the compared carriers’ rates expected to change before October 17, 2017, the effective date of the contractual 1.5% all-in pay increase. The all-in rates, which include base pay, license premiums, line premium, and longevity at the top of each scale, are: 1) Delta $49.36, 2) United $47.53, 3) American/US Airways $47.31, 4) Alaska $46.74, 5) JetBlue $44.12, 6) Southwest $43.89, 7) Spirt $40.38, 8) Hawaiian $39.00, 9) Frontier $33.52, and 10) Allegiant $32.57. The midpoint of the all-in wage rates for the carriers we are compared with is $44.01; since our rate with the 1.5% all-in increase is above the midpoint at $46.74, no additional increase is required. The data issues are with the new Hawaiian agreement and Allegiant rates, which are both below our rate. When the missing data is provided, confirmed, and if it changes the numbers, we will provide another update.

We then went to the internal review. Due to the fact that Alaska did not negotiate an Agreement with any other labor group since we ratified our Agreement, the internal review was not required; therefore, no additional increase is required as defined by this step. Though not required, the Company is providing AMFA with the data that identifies where they rank compared to their peers in the industry. Due to the fact the pilots have been in negotiations and are now waiting on the arbitrators ruling on their agreement, the internal review will be in effect for next year’s review.